First Time Homebuyer - Bad Credit
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If you are looking to buy a home in todays real estate market and you are a first time homebuyer with bad credit, you will probably have a tough time finding financing. However, there still are options for first time homebuyers with bad credit. Consult a mortgage professional to find out if you can qualify for a mortgage, even with bad credit.When you are a first time homebuyer with bad credit, depending on how bad your credit actually is, there are many conforming programs such as MyCommunity, Home Possible and a few others that will offer financing with low to no down payments required. These programs are offered through FNMA, Fannie Mae, and FHLMC, Freddie Mac, products. If your credit is suspect or questionable, then you will want to make sure that your mortgage professional has access to both FNMA and FHLMC underwriting engines to give you your best chance for mortgage approval. First time homebuyers with bad credit still have options, they just need to make sure they work with an experienced mortgage professional with numerous underwriting engines available.
Sub prime mortgages are a great choice for borrowers who have bad credit and are buying a home. FHA is another great option for borrowers with bad credit.A sub prime mortgage has less restrictions then an FHA loan but FHA will have a much lower interest rate. FHA underwriters will qualify a bad credit borrower based on credit profile not just credit score. When it comes to deciding between FHA and sub prime FHA is the best choice if you can qualify. Your mortgage broker will be able to guide you and let you know your best options
If you are a firsttime homebuyer with bad credit, it is important to determine exactly how bad your credit is. Review your credit with a mortgage professional to see exactly how you can put yourself in a position to purchase a home.